DCCI welcomes FY27 budget, warns of revenue challenges

The Dhaka Chamber of Commerce & Industry (DCCI) has described the proposed FY2026-27 national budget as supportive of business growth and investment, while cautioning that its success will depend on meeting ambitious revenue targets and effectively implementing planned reforms.

Speaking at a post-budget discussion held at the DCCI Auditorium on Thursday, DCCI President Taskeen Ahmed said the budget contains several positive measures for the private sector, but achieving its objectives will require strong execution and realistic revenue collection.

The proposed budget, amounting to Tk 9.38 lakh crore, projects revenue growth of more than 30 percent over the current fiscal year. According to DCCI, reaching that target could be difficult given the prevailing economic conditions.

The chamber also expressed concern over the government‍‍`s reliance on borrowing to finance the budget deficit, warning that excessive borrowing could put additional pressure on the banking sector and limit access to credit for private businesses.

While welcoming the proposed Annual Development Programme (ADP) allocation of Tk 3 lakh crore, DCCI noted that development spending must be accompanied by improved implementation. The chamber pointed out that the ADP implementation rate in the current fiscal year remained relatively low, highlighting ongoing execution challenges.

On tax policy, DCCI praised several measures aimed at easing the burden on businesses. These include recognizing withholding tax as advance tax, lowering withholding tax on industrial raw materials to 4 percent, introducing a 0.5 percent withholding tax on essential commodities and offering a five-year advance tax framework for sectors such as healthcare, renewable energy and electric vehicles.

However, the chamber expressed disappointment that the tax-free income threshold for individuals was left unchanged despite continued inflationary pressures. It also raised concerns over the proposed top personal income tax rate of 35 percent and called for increasing the tax-free income limit to Tk 5 lakh.

DCCI welcomed a number of initiatives designed to support small and medium-sized enterprises, including turnover tax exemptions for eligible SME entrepreneurs and special benefits for women entrepreneurs and persons with disabilities. The chamber also praised the introduction of small e-loans under Bangladesh Bank‍‍`s stimulus programme.

In the energy sector, DCCI appreciated incentives for electric vehicles, including VAT exemptions and duty-free import facilities for charging equipment. At the same time, it said measures related to gas exploration and production were insufficient to meet the country‍‍`s growing energy demand.

The business body urged the government to develop a long-term and predictable energy pricing policy through consultations with stakeholders, arguing that sustainable investment requires greater certainty.

DCCI also welcomed several investment-friendly reforms, including mandatory single-window services, faster work permit processing, quicker investor visa approvals and lower withholding tax on interest payments for foreign loans.

The chamber concluded that while the budget contains several business-oriented measures, its overall success will ultimately depend on implementation, fiscal discipline and the government‍‍`s ability to achieve its revenue goals.